Flutter Entertainment reported favorable growth to close a fiscal year when the entertainment and gaming giant downgrade its revenue guidance for U.S. operations.
The sports betting and iGaming leader generated $3.7 billion in revenue in Q4 2024, a 14% increase year-over-year. Net income for Flutter reached $156 million during the quarter. By comparison, the gaming giant reported a net loss of $902 million in Q4 2023. Flutter also saw its adjusted EBITDA in Q4 2024 grow to $655 million, up 4% compared to Q4 2023.
Flutter’s results in Q4 2024 closed a stable fiscal year for the FanDuel owner with full-year revenue in 2024 reaching $14 billion compared to $11.7 billion for the year prior.
The company’s full-year group net income closed at $162 million, up from a $1.2 billion net loss in 2023. Its adjusted EBITDA in 2024 was $2.3 billion, a 26% increase year-over-year.
Average monthly players for Flutter in 2024 reached 13.8 million, up from 12.3 million in 2023.
Flutter makes a quick adjustment
Flutter posted positive growth in 2024 after lowering its revenue guidance for FanDuel.
The company reported $438 million in negative impact on gross gaming revenue due to the “highest rate of favorites winning in nearly 20 years” during the 2024 NFL season.
As a result, Flutter lowered its U.S. full-year revenue projection to $5.8 billion, roughly $370 million lower than its previous estimate. It also downgraded its adjusted EBITDA to reach $505 million, down from a previous projection of $650 million to $750 million.
Flutter’s official results for FanDuel in 2024 closed at $5.8 billion in revenue. The U.S. operator posted an adjusted EBITDA of $507 million in 2024. Flutter projects full-year revenue for FanDuel in 2025 to range between $7.4 billion and $7.9 billion.
FanDuel’s adjusted EBITDA in 2025 is estimated to be between $1.3 billion and $1.5 billion.
Potential tax increase for Flutter
Operators in New Jersey are facing a potential tax increase after Gov. Phil Murphy released his budget plan for 2026 proposing a tax hike on sports betting and iGaming.
The budget plan, which proposes to spend a record $58.1 billion, would raise the state’s tax rate on online sports betting and iGaming to 25%. New Jersey gaming law currently levies a 13% tax rate on online sports betting. Online casinos in the state are taxed at 15%.
“We are also monitoring proposals for state gaming tax increases within the regulated sports betting market, and we’re working closely with advisers and regulators alongside our peers to ensure the impact such changes can help on the regulated market are well understood,” said Flutter CEO Jeremy Jackson during the company’s earnings call.
The proposed tax increase is projected to generate an additional $402.4 million in revenue.
Flutter anticipates a busy year
Flutter is considering diversifying its business with the introduction of prediction markets.
“We are monitoring the situation with these sports futures contracts closely,” added Jackson. “The regulation is very fluid. We understand that the CFTC is due to hold a roundtable on sports-related event contracts for the next month or so, and we get especially some clarity thereafter. It could be an interesting opportunity.”
This year, Flutter is preparing for its launch of sports betting operations in Missouri. The company expects to offer online wagering to Missouri residents and visitors in Q4.
DraftKings anticipates $80 million in investment costs related to its Missouri launch.
Flutter will also be bringing its products to Alberta in 2026. The company plans to launch operations in Q1 2026 with pre-live investments expected to reach $10 million.
Flutter is also continuing to diversify its operations through innovative betting products.
The company has announced plans to bring its YourWay feature to NBA markets allowing fans to customize and adjust player prop betting lines and player performance markets.
“People are really enjoying the extent to which they can customize and find bets that they couldn’t have done otherwise,” continued Jackson. “We’re excited to see what we can do with this product as we continue to evolve it.”
Earlier this year, FanDuel soft launched YourWay to select customers in several markets. The operator began offering the new customizable betting product for NFL markets.
